(Reuters) – The Commodity Futures Trading Commission (CFTC) on Tuesday filed a civil enforcement action against Fisher Capital and its owner, Alexander Spellane, alleging it perpetrated a precious metals investment fraud targeting older adults.
The Los Angeles-based dealer of precious metals defrauded “hundreds of elderly persons into investing more than $30 million in gold and silver coins worth far less than the defendants led victims to believe,” the agency said.
Denying the allegations made by the CFTC, Fisher Capital said “we respectfully disagree with the charges made in the complaint by the CFTC and plan to defend ourselves and defend the free will of our clients to make their own financial decisions.”
Fisher Capital has “never targeted any specific demographic nor sold precious metals for fraudulent gain as this complaint wrongfully alleges,” the company said in an emailed statement to Reuters.
The CFTC said Fisher Capital and Spellane used high-pressure sales pitches over the telephone to instill fear about the safety of traditional retirement and savings accounts, and deceived victims into purchasing grossly overpriced precious metals.
The CFTC sought the return of what it termed the ill-gotten gains, civil monetary penalties, restitution, permanent registration bans, and permanent injunctions against further violations of the Commodity Exchange Act and CFTC regulations, as charged.
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(Reporting by Harshit Verma in Bengaluru; Editing by Matthew Lewis and Lincoln Feast)